For the year ended December 31, 2012, Stirling Farms Limited, a private company, reported a profit of

Question:

For the year ended December 31, 2012, Stirling Farms Limited, a private company, reported a profit of $150,000. The company declared dividends of $90,000 and paid $80,000 of these dividends during the year.
(a) Prepare a statement of retained earnings for the year, assuming the balance in Retained Earnings on January 1, 2012, was $490,000.
(b) How might this statement change if Stirling Farms were a publicly traded company?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118024492

5th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

Question Posted: